Finding Text
U.S. Department of Housing and Urban Development Pass-through Entity: City of Charlotte, North Carolina Program Name: Home Investment Partnerships Program Federal Assistance Listing Number: 14.239 Material Weakness – Eligibility Finding 2025-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For all five (5) participants tested, while they were determined to be eligible, the Organization did not have formal documentation evidencing review and approval of client eligibility packets by an individual independent of the preparer. Questioned Costs: None noted. Effect: Without the documented evidence of review, eligibility determinations cannot be readily substantiated, increasing the risk that assistance could be provided to individuals who do not meet program eligibility requirements. Cause: The Organization does not have a formal policy or standardized process requiring documentation of supervisory review and approval of client eligibility packets. Recommendation: The Organization should consider implementing a formal policy requiring documented supervisory review and approval of all client eligibility packets and retain such documentation to evidence compliance with program requirements. Views of Management: Management agrees with the finding and is implementing procedures to correct this which are further discussed in the Corrective Action Plan. See Corrective Action Plan for more information.